Editor’s Note
The European Union has added Russian diamond producer Alrosa and its CEO to its sanctions list, aligning with its 12th package of sanctions aimed at banning diamond imports.
On Wednesday, January 3, the European Union announced that it has placed Russia’s largest diamond producer, Alrosa, and its CEO on its sanctions list.
EU foreign policy chief Josep Borrell stated on the social media platform X.
This action follows the EU’s decision on December 18 to impose a 12th package of sanctions against Russia, which included a diamond ban.
Being placed on the sanctions list means Alrosa’s assets in Europe will be frozen, and EU citizens and companies are prohibited from providing funds to the company. Alrosa’s CEO, Pavel Marinychev, also faces a travel ban to Europe.
The EU has banned the import, purchase, or transfer of natural and synthetic diamonds, as well as diamond jewelry for non-industrial use, originating from Russia, exported from Russia, transiting through Russia, or processed elsewhere from Russian diamonds, effective January 1 of this year.
Alrosa accounts for about 90% of Russia’s diamond production. The company is one of the world’s largest diamond giants, supplying about one-third of the global diamond market, second only to De Beers, which held a monopoly until the early 2000s. The Russian government owns one-third of Alrosa’s shares. The company reported revenue of $1.9 billion in the first half of 2022.
The EU’s diamond ban against Russia is being implemented in coordination with the Group of Seven (G7), which announced a similar ban in early December.
The EU considers Alrosa a significant part of Russia’s economic sector, providing substantial revenue for the country. The European Commission estimates Russia’s annual diamond sales revenue at approximately 4 billion euros.